Tuesday’s Stock Watch
The broader markets
made gains on the day, with technology putting in the best performance.
Overall volume was average, with up volume clearly dominating down volume. We
saw a decent number of breakouts to new highs, though not at the level we would
like to see endorse this trend. The stocks on our watch list were mixed with
some key accumulation and distribution days made.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) closed up
1.11% to
9,976.46. The S&P 500
(
$SPX |
Quote |
Chart |
News |
PowerRating) closed up
0.85% to
1,148.31.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed up
1.89% to
1,934.49.
| NYSE | NASDAQ | |
| Advancing Issues | 1,952 |
2,242 |
| Declining Issues | 1,173 |
1,430 |
| Advancing Volume | 939,617,000 |
1,385,175,000 |
| Declining Volume | 324,574,000 |
729,134,000 |
| Total Volume | 1,287,402,000 |
2,152,605,000 |
| New 52-week Highs | 19 | 20 |
| New 52-week Lows | 5 | 2 |
Top sector gainers:
Airline Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating) up
+10.35% to
89.59.
Morgan Stanley Internet Idx
(
$MOX.X |
Quote |
Chart |
News |
PowerRating) up
+7.62%
to
14.55.
Biotechnology Index
(
BTK.X |
Quote |
Chart |
News |
PowerRating)
up +4.15% to
607.27
Losing sectors:
Semiconductor Sector
Index
(
$SOXI.X |
Quote |
Chart |
News |
PowerRating) down
-1.06% to
524.31.
Leading Sectors
with new highs:
Business Services – 3
Restaurants – 3
PEC
Solutions
(
PECS |
Quote |
Chart |
News |
PowerRating), up 7.14% on over twice average volume, had another
impressive accumulation day. The Internet sector, which
has been a catalyst for this stock, is still grinding higher. The question now
is: how long can it lead?
Panera Bread Company
(
PNRA |
Quote |
Chart |
News |
PowerRating) had a distribution day, down 3.69% on above-average volume.
The stock has an RS of 96 and had earnings growth over 67% last quarter, with
a 41% growth rate expected for 2002. The Missouri-based company offers
franchises for bakery-cafes.
Recent Breakouts
We monitor the action of Recent Breakouts as an indicator of the market
health for IT traders. When breakouts are acting well, this is a good sign for
the likelihood of further sustainable breakouts. When breakouts our failing, IT
traders should be even more cautious.
American Healthways Inc.
(
AMHC |
Quote |
Chart |
News |
PowerRating) trading on low
volume, gained 2.52%.
EPIQ
(
EPIQ |
Quote |
Chart |
News |
PowerRating) Systems had an accumulation day, up 2.83% on twice
normal volume.
Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating)
did very little today, on average volume, up .73%.
Krispy Kreme Doughnuts
(
KKD |
Quote |
Chart |
News |
PowerRating) had an
accumulation day, up 3.18%, on twice normal volume.
Nvidia Corp.
(
NVDA |
Quote |
Chart |
News |
PowerRating)
had a distribution day, down 2.19% on twice normal volume.
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| American Healthways Inc. | ( AMHC | Quote | Chart | News | PowerRating) |
99 | 45.50 | + 1.05 | 146,300 |
| Copart Inc. | ( CPRT | Quote | Chart | News | PowerRating) |
96 | 29.99 | + 0.02 | 806,000 |
| EPIQ Systems | ( EPIQ | Quote | Chart | News | PowerRating) |
98 | 38.43 | + 1.06 | 165,900 |
| Genesis Microchip | ( GNSS | Quote | Chart | News | PowerRating) |
98 | 44.01 | + 0.32 | 2,424,600 |
| Nvidia Corp. | ( NVDA | Quote | Chart | News | PowerRating) |
94 | 51.34 | – 1.15 | 9,960,700 |
| Panera Bread Co. | ( PNRA | Quote | Chart | News | PowerRating) |
96 | 45.50 | – 1.75 | 318,500 |
| Krispy Kreme Doughnuts | ( KKD | Quote | Chart | News | PowerRating) |
95 | 41.79 | + 1.29 | 801,000 |
| PEC Solutions | ( PECS | Quote | Chart | News | PowerRating) |
98 | 31.79 | + 2.13 | 371,900 |
Stocks Forming a Handle
THQ Inc.
(
THQI |
Quote |
Chart |
News |
PowerRating) made a distribution day by falling
1.46% on twice normal volume.
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| THQ Inc. | [THQI|THQI} | 96 | 54.20 | + 1.52 | 1,141,600 |
Stocks Building A Base
Company Name |
Symbol |
12 Month RS |
Price |
Price Change |
Average Volume |
| Metro One Telecomm Inc |
( MTON | Quote | Chart | News | PowerRating) |
96 |
37.70 |
+ 0.14 |
805,400 |
| MTR Gaming Group | ( MNTG | Quote | Chart | News | PowerRating) |
95 | 12.60 | + 0.57 | 669,300 |
Remember that all securities are
risky. In any trade, you should always reduce your risk by adjusting position
size and placing open protective stops where you will sell your long or
cover your short in case the market turns against you. For an introduction to
combining price stops with position sizing, see our lesson,
Risky
Business.